Question
Use the following information to determine the probability distribution of per unit gains from selling Mexican peso futures. Spot rate of peso is $.12. Price
Use the following information to determine the probability distribution of per unit gains from selling Mexican peso futures.
Spot rate of peso is $.12.
Price of peso futures per unit is $.145 per unit.
Your expectation of peso spot rate at maturity of futures contract is:
| Possible Outcome for Future Spot Rate | Probability |
| 0.10 | 08% |
| 0.115 | 62% |
| 0.15 | 30% |
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History Of Financial Institutions Essays On The History Of European Finance 1800–1950
Authors: Carmen Hofmann , Martin L. Müller
1st Edition
1138325007, 978-1138325005
